The Effect of Internal Control and Total Quality Management on Organizational Performance

摘要

The study discovers the effect of internal control and Total Quality Management (TQM) on organizational performance. To achieve the objectives of the study, a theoretical framework was developed and some hypotheses were proposed. Data were collected by the questionnaire instrument. The unit of analysis is state-owned enterprises in Padang city. The study utilized primary data which is obtained through the questionnaire. Total sampling is used in this study. 90 questionnaires were returned as a final sample. Data were analyzed by Multiple Regression Analysis performed by SPSS 23 software. The result shows that Internal Control has a positive and significant effect on organizational performance. Total Quality Management has a positive and significant effect on organizational performance. Based on the findings of the research, the researchers suggest a number of relevant recommendations related to improving awareness about the importance of internal control system components, especially indicators of activity monitoring, while for TQM practices, process improvement is the most important thing that can improve organizational performance.